Petrol prices

Press, Volume CXV, Issue 33790, 12 March 1975, Page 16

Petrol prices

Sir, — With every increase in the retail price of petrol, it appears to me that service station proprietors cover a considerable amount of their increasing costs without even working. I refer, to stock on hand at the time of increase. A large service station may be carrying 10,000 gallons of regular and super, and with full tanks, a tidy profit overnight. Mr Freer does not allow grocery stores the privilege of marking up old stock, so to be consistent to all business people, and the public especially, why are petrol suppliers allowed to

make a “killing,” every time there is an increase in petrol prices? — Yours etc., M.R.P. (Maximum Retail Profit). February 26, 1975. [The Minister of Trade and Industry (Mr Freer) replies: “Unlike other commodities, petrol is subject to a fixed price determined by regulations issued from time to time in terms of the Motor Spirits (Regulation of Prices) Act, 1933. A new price having been fixed, it is not permissible for petrol to be sold at the former price, whether higher or lower than the current price. There are particular reasons for this special treatment of petrol prices. Petrol retailers do obtain a higher profit from selling stock on hand at the increased price. However, this fact is borne in mind in the determination from time to time of the retailers’ margin on petrol.”]